Pharmos Corp. on Monday announced contracts with investorsto sell $10 million of newly issued common stock in a privateplacement at $1.50 per share. The transaction was arranged byTucker Anthony Inc. and D. Blech & Co.

The company said it will receive the net proceeds from thetransaction upon the effectiveness of a registration statementto be filed by Pharmos covering resales by purchasers or in 90days, whichever comes first.

In connection with the private placement David Blech hascanceled 7.2 million of his $1.25 and $1.75 per share warrantsin exchange for 3.5 million shares of Pharmos common stock(NASDAQ:PARS), the company said.

Pharmos' stock closed unchanged Monday at $1.88 per share.

Proceeds from the placement will primarily go to fund thecompany's scientific and clinical programs, in particular tocomplete Phase III clinical trials of Loteprednol Etabonate, atreatment for ocular inflammation and the company's leadproduct. Pharmos said it hopes to complete the trials early in1994, and file a new drug application in the first half of nextyear.

Pharmos of New York is a drug-delivery company focused ondiseases of the eye and central nervous system. The companyalso is conducting Phase II trials on two anti-glaucoma agents,Adaprolol Maleate and a twice-daily formulation of Pilocarpine.Pharmos' blood brain barrier-penetrating estradiol for post-menopausal conditions is also in Phase II trials, and aneuroprotectant for treating stroke and head trauma, HU-211,is in Phase I.

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